Removal of Disclosure of Material Events or Conditions Relating to Going Concern
AP HOLDINGS CO.,LTD. (the filing company)
The domestic and Hong Kong businesses, including the previously unprofitable Kyushu Tsukada Nojo and Hong Kong businesses
The Company became technically insolvent due to a severe decline in performance caused by the spread of COVID-19, as well as impairment losses recognized in connection with the withdrawal from underperforming stores in the domestic and Hong Kong businesses. The factors cited in eliminating the negative net worth position include the sale of a subsidiary, strengthening of the financial position, and improved business profitability.
¥438 million (extraordinary income recognized as a gain on the sale of investments in an affiliate during the consolidated fiscal year ending March 2026)
The consolidated fiscal year ending March 2026 (the negative net worth position was eliminated at the end of the fiscal year)
Company response
Withdrawal from underperforming stores in the domestic and Hong Kong businesses (described as a past measure)
Structural reforms, including organizational restructuring, a fundamental review of the staffing structure, improvements in training, renewal of the management structures for the Kyushu Tsukada Nojo and Hong Kong businesses, and a rebuilding of the brand
The Company will continue making every effort to further enhance corporate value.
| Item | Details |
|---|---|
| Event name | Removal of Disclosure of Material Events or Conditions Relating to Going Concern |
| Date of occurrence | End of the fiscal year ending March 2026 (the specific calendar date is Not disclosed) |
| Subject Entity | AP HOLDINGS CO.,LTD. (the filing company) |
| Target Locations / Products | The domestic and Hong Kong businesses, including the previously unprofitable Kyushu Tsukada Nojo and Hong Kong businesses |
| Cause | The Company became technically insolvent due to a severe decline in performance caused by the spread of COVID-19, as well as impairment losses recognized in connection with the withdrawal from underperforming stores in the domestic and Hong Kong businesses. The factors cited in eliminating the negative net worth position include the sale of a subsidiary, strengthening of the financial position, and improved business profitability. |
| Amount of Impact on Business Performance | ¥438 million (extraordinary income recognized as a gain on the sale of investments in an affiliate during the consolidated fiscal year ending March 2026) |
| Accounting period in which recognized | The consolidated fiscal year ending March 2026 (the negative net worth position was eliminated at the end of the fiscal year) |
| Suspended operations | Withdrawal from underperforming stores in the domestic and Hong Kong businesses (described as a past measure) |
| Measures to prevent recurrence | Structural reforms, including organizational restructuring, a fundamental review of the staffing structure, improvements in training, renewal of the management structures for the Kyushu Tsukada Nojo and Hong Kong businesses, and a rebuilding of the brand |
| Outlook | The Company will continue making every effort to further enhance corporate value. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Upon completion of the sale of a subsidiary, the Company recognized a ¥438 million gain on the sale of investments in an affiliate and strengthened its financial position. In addition, net assets increased as a result of improved business profitability, eliminating the negative net worth position at the end of the fiscal year. The Company explained that it had reviewed its staffing structure and training, the management structures of the Kyushu Tsukada Nojo and Hong Kong businesses, and its branding, and had also achieved monthly profitability in the Hong Kong business.